Fire your Accountant & Hire a Partner

How to choose the best Accountant – Part 1

Posted on 09 December 2009

Hi! This is Vince Schembri, I’m the President of Clydesdale Services Inc. I’ve been in the accounting profession for over 20 years. In that time, I’ve learned that working with an accountant produces a variety of responses. Some of them are: “Oh No”, to……”How did I get stuck with this guy”,  to…”Huh, what? I don’t understand?” and finally…“thank you, thank you, thank you”.

Welcome to my first blog post! The first of many that will  shock you into seeing things in a different way! Read on to find out how to get the best accountant, not just someone who does your books and year end tax filing.

Most people think that all accountants are the same. I’m here to tell you it’s not true. Another common view is that accounting is just a cost of doing business. This way of thinking only serves to block the financial rewards that could be earned by teaming up with your accountant.

The purpose of this blog post is to offer free information, so when you are dealing with your accountant, you can make decisions that improve your business.  That’s right, I ‘m saying that working with your accountant can increase your profit!  Don’t believe me? Stick around… You might be shocked!!!

In Part 1, I will give you four recommendations to find out if you are “accountant ready”.  Part 2 will have five critical questions for you to ask your accountant before you choose them as a business partner.

So, here goes………….. Part 1:

Recommendation #1: ACCOUNTANTS ARE EXPENSIVE AND ALL THEY WANT IS MY MONEY.

Can be true….but an accountant’s task should be to analyze the clients business from a financial perspective and make the necessary recommendations to improve that business. That’s right – I said improve! These improvements are not just esthetics, they are based on dollars and sense.

Part of this process is to also look at the tax side of the equation. In order to fulfill these requirements, accountants trade time for money. After all, that is their greatest asset, their time. Their second asset is their expertise – more on this later.

Most business owners would understand the value of a piece of equipment because it is understood that it will increase their income potential. The value that a good accountant should provide is from the same perspective. A good accountant can show you how to increase your income and/or decrease your outflows/expenses. He or she can do this with his mind – an incredible piece of machinery! An accountant should be considered an investment in your business, so take care when choosing your specialized equipment.

Remember if you don’t ask the right questions, he or she can’t help you. So Ask! Go ahead.

Recommendation #2: I NEVER HEAR FROM MY ACCOUNTANT AND HE OR SHE DOESN’T RETURN MY MESSAGES.

These days, the high demand for qualified accountants puts this situation at the top of the list. The demand has risen substantially and there now exists a shortage of good qualified accountants to choose from. This in turn has created increased workloads and a shortage of available time. With this in mind, you have a right to have your concerns answered. If you still receive no answers to your question, find another accountant. Yes I know it’s tough to let go, but if your accountant won’t return your call, he or she probably won’t add value to your business. You need to expect an accountant to add value.

Recommendation #3: MY ACCOUNTANT’S BILL SEEMS HIGH AND I DON’T UNDERSTAND IT.

As the person who pays the bill, you have the right to ask questions. If you have no idea as to why your bill is the way it is, call your accountant. If you are still not satisfied, ask to speak to a supervisor. If that fails, contact one of the partners. You should know what you are being billed for and what the hourly rates are. If you don’t have a satisfactory solution, hold back payment until you do.  Your accountant should never be uncomfortable with answering these questions.  If they are, you might want to shop for another one.

Recommendation #4: I WILL END UP PAYING MORE MONEY TO AN ACCOUNTANT JUST BY CONTACTING THEM.

Unfortunately, the accounting profession has made it a habit of charging clients for every conceivable moment of time spent with a client. This is done because time is their greatest asset.

Good news!!! There are other alternatives you can use to find answers to your questions. Today’s technology, like this blog, is able to answer a lot of those concerns. If your question is regarding taxation, check out the CRA (Canada Revenue Agency) or IRS (Internal Revenue Service) website or call them on their toll free numbers. They are quite helpful. That’s right, they are….. not as scary as some people think and you can stay anonymous. This is also true for most other government agencies, not true for some. Email me and I will let you know the ones that can be tough.

Another possibility is to contact qualified teachers at a variety of schools. Most teachers want to help and they won’t charge you for every moment of their time. Please just make sure that you also check with them for their availability. Also, check their rates before you make any commitment.

Wow. That’s a lot of information! We’ll call this the end of Part 1. Log in next week for Part 2, or just click on “stay connected” on the right.

Until next week, ciao and arrivederci, (you guessed it, I’m Italian)

Vinnie